The auto company and manufacturer of Toyota Cars in Pakistan, Indus Motors has stopped production of new Toyota cars for the rest of September. This step is taken due to huge decline in sale of new cars because of the price hike. After this halt there will be total 15 non production days (NPD) in this month.
An employee in Indus Motors anonymously told that there has been already been 8 NPDs in July and 12 NPDs in August. There are a number of reasons which caused the increase in price which include federal excise duty (FED) (2.5 – 7.5 percent on various engine capacity cars) in the current budget, devaluation of pakistani rupee against dollar, customs duty on parts and raw material and heavy interest rates which made their cars out of reach.
According to sources there are 3000 unsold cars present at Toyota plant. Due to this pile of unsold cars, Toyota Pakistan had to close down production of new cars
During the period of July-August Toyota Corolla production & sales dropped to 5,308 units and 3,708 units respectively in comparison to 8,804 and 8,770 units last year with a total fall of 40% and 57% in production / sales.
Toyota Hilux production and sales went to 793 units and 716 units from 1,383 and units 1,292 units in comparison to last year , which caused a drop of 42% and 44% respectively. Moreover, Toyota Fortuner came down to 232 units and 162 units from 484 units and 424 units, a drop of 52% and 62% respectively.